Fitch affirms Ventrelt

Fitch Ratings said it affirmed Ventrelt Holdings Ltd.'s long-term foreign- and local-currency issuer default ratings at BB-, its national long-term rating at A+(rus) and the senior unsecured rating of RVK-Finance LLC's RUB 1.75 billion bonds at BB-. The group operates under the name Rosvodokanal.

The outlooks for the long-term ratings are stable.

The agency said the ratings reflect the existing regulatory framework in the Russian Federation, the group's strong market position, its moderate leverage and its existing short-term funding structure.

Changes in concession legislation introduced in 2010 provide for, among other things, long-term utility tariffs that, when fully implemented, would increase earnings visibility in the sector and improve the legal status and protection of concessionaires, the agency said. Until then, Fitch's assessment of the sector's business risk will be based on the existing regulatory framework.

The group's net debt-to-EBITDA ratio for 2009 was around 1.4 times.

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